Fintech startup Zeta has announced that it has secured $250 million in investment from SoftBank Vision Fund 2. This Series C investment standards Zeta at $1.45 billion. With this investment, Zeta becomes the newest contestant to the unicorn club.
Bhavin Turakhia, CEO & Co-founder, Zeta, states, “Most banks are using decades-old software built when Mainframes and Cobol were in vogue. They have been slow to innovate and provide poor user experiences. With Zeta, FIs can leverage a modern, cloud-native platform and improve speed to market, agility, cost to income ratio and user experience. We are privileged to have SoftBank join us in this exciting journey as we together disrupt the stagnant landscape of banking tech.”
Sodexo participated as an extra alternative investor in the round. The profits of this funding round will be used to hasten Zeta’s growth in the United States, Europe, and India including scaling its operations, team, and platform to meet the demands of its customer base. Zeta counts between its customers over 10 Banks and 25 Fintechs, across 8 countries, including Sodexo, HDFC Bank, Kotak Mahindra Bank, Axis Bank, IndusInd Bank, Yes Bank, RBL Bank, SBM Bank India, and others.
“Banking software is a $300 billion industry globally. Most banks still employ technology which is significantly older than their customers, impacting user experience and engagement. Zeta’s modern Omni Stack will drive banking software upgrades catering to the digital consumer, and innovations in financial services globally,” said, Munish Varma, Managing Partner, SoftBank Investment Advisers.
Ramki Gaddipati, CTO & Co-founder, Zeta, states, “As the world moves to real-time payments and digital financial services, the number of transactions per day between banks and customers are expected to grow exponentially. The increasingly digital world represents evolving security, privacy, and data protection challenges to banks. The industry needs systems reinvented with security, privacy, scalability and reliability as the core foundations. Zeta’s Omni Stack answers that need.”
Founded by Bhavin Turakhia and Ramki Gaddipati, Zeta has existence in North America, LATAM, UK, Europe and Asia. Avendus Capital acted as the elite financial advisor on this transaction.